Question 3: Style 360 Company is a family-owned company. The company produces a handmade traveling bag. The handmade traveling bag is sold for $650. Selected data for the company’s operations last month follow:   Units in the beginning inventory 0 Units produced 800 Units sold 800 Units in ending inventory 0 Variable cost per unit Direct material $135 Direct labor $75 Variable manufacturing overheads $20 Variable selling and administrative $13 Fixed Cost Fixed manufacturing overhead $24,000 Fixed selling and administrative $16,000 Requirement  Assume that the company uses variable costing. Compute the unit product cost for one traveling ba

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.